Stelco Inc. (ticker: STE.to, exchange: Toronto Stock Exchange) News Release - 5/5/2004

Stelco comments on court decision denying USWA locals leave to appeal

Invites union to join meaningful discussions, pursue a successful restructuring

HAMILTON, ON, May 05, 2004 (Canada NewsWire via COMTEX) -- Stelco Inc. (TSX:STE) has commented on today's ruling denying several local unions of the United Steelworkers of America ("USWA") leave to appeal a decision of the Superior Court of Justice (Ontario) that the Company was insolvent under the Companies' Creditors Arrangement Act ("CCAA").

Courtney Pratt, Stelco President and Chief Executive Officer, said, "We welcome this decision because now we can focus on pursuing a successful restructuring.

"I invite our union representatives to join with us in the meaningful discussions that must begin soon. A successful restructuring is the only available means of achieving a positive outcome and our common goal - a viable and competitive Stelco providing well-paying jobs to our employees, security to our retirees, and a range of benefits to the community."

Stelco Inc. is a large and diversified Canadian steel producer. It is involved in all major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. Stelco has a presence in six Canadian provinces and in two states of the United States. Consolidated net sales in 2002 were $2.8 billion.

This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2002 Annual Report.

To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca.

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For further information:

Tim Huxley, Vice President - Corporate Affairs

(905) 528-2511, Extension 4070